A dearth of top-quality office space in Edinburgh and Glasgow
has seen the Scottish cities outperform their competitors south of
the border, according to a report published today.

It was revealed that Scotland's two biggest cities accounted for
almost half (42 per cent) of all office space rented out within the
'regional' market in Q2 2012, with demand far outstripping
supply.

However, commercial property firm GVA, believes the lack of
'Grade A' property in the coming years will hamper the markets in
Edinburgh and Glasgow for the foreseeable future.

Toby Withall, national markets director for GVA Scotland, said:
"These figures highlight the potential problems that will affect
Edinburgh within the next couple of years.

"What we are witnessing is an increasing demand for space but
there is a significant shortfall of quality office space available
in the capital. If occupiers whose leases are due to expire in
2013-15 decide, as expected, to relocate this will only intensify
the situation further."

The Scottish capital is expected to run out of 'Grade A' office
space within the next 18-24 months with no prospect of new
developments at present due to a lack of funding.

Edinburgh recorded the biggest amount of city centre office
space leased, ahead of second-placed Manchester with 142,878sq ft ahead of the
Lancashire city which had 132,584sq ft.

Glasgow also outperformed the likes of Birmingham, Cardiff, Liverpool and
Newcastle with 118,870sq ft of city centre office space leased.

Earlier in the month it was suggested that the UK property
market would experience a surge in interest due to the Eurozone
problems elsewhere.

Some property investors are seeing scope to take advantage of
depressed asset pricing within the current market and are securing
top-quality office space in major UK cities as a result.

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